PG&E Corp (PCG) Beats on Q4 Earnings, Expenses Increase Y/Y

PG&E Corporation’s PCG adjusted operating earnings per share (EPS) of $1.33 in the fourth quarter of 2016 surpassed the Zacks Consensus Estimate of $1.29 by 3.1%. Earnings were also up 166% from 50 cents reported in the year-ago quarter.

GAAP earnings during the quarter were $1.36 per share, compared with 27 cents a year ago.

During full-year 2016, the company’s adjusted operating EPS came in at $3.76, which beat the Zacks Consensus Estimate of $3.72 by 1.1%.

Revenue Update

During 2016, the company reported revenues of $17.67 billion, up 4.95% from $16.83 billion in 2015. The full-year revenue figure however missed the Zacks Consensus Estimate of $17.89 billion by 1.2%.

Electric revenues were up 1.5% from the 2015 levels while natural gas revenues rose 19.7%.

Total operating expenses in 2016 were $15.49 billion, up 1.1% from $15.33 billion in 2015. Costs increased due to higher operation and maintenance expenses as well as depreciation, amortization and decommissioning costs.

Operating income came in at $2.17 billion, up from $1.51 billion in 2015.

Interest expenses in 2016 were $829 million, compared with $773 million in the year-ago quarter.

Guidance

The company has reiterated its guidance for 2017 adjusted earnings from operations at the range of $3.55−$3.75 per share.

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